Caught in the Undertow

Lessons Learned from Losing a Client

Posted by Doug Zanger on 08.25.08 @ 05:51 PM

Doug Zanger

I suppose it was inevitable. The economy compromised one of our clients for the first time this week. Not surprisingly, it was in the automotive category. The automotive "boat" is taking on more and more water every day; for us, massive cuts led to the casualty.

Losing a client isn't exactly the end of the world. When we decided to put the shingle up, we knew what we were getting into. It's a fluid business, but losing any client is an emotional experience, and it's difficult not to be affected by the immediate aftermath. What made this one sting is the fact that we really enjoyed working with the client. They trusted us and valued our input across the board. The silver lining here is that, when things turn around, it's likely we will re-engage with them.

I was once told that to have a successful agency, especially one that works with local clients, you want automotive in the portfolio. I think that's true to some extent, but having some diversity and a solid development plan helps to smooth away any bumps. That said, with the market realities we face today, it's important to maintain an open frame of mind. If we react too strongly, we could lose focus on our short- and long-term goals. If we're not somewhat flexible, we could miss an opportunity. There is such a delicate balance for a microagency during a recession, especially one that is still very young and cutting its teeth. We want to be aggressive but need to protect the turf we've worked so hard to earn.

There's a personal twist in all of this: My wife and I are expecting our first child in a few months. Sure, there was a little moment of panic when we got the word from our client this week. But it was quickly replaced with what I hope is some proper perspective. Work will always be just that, work. And in some cases, it will come and go. But what's going to happen soon for our family is far more important and exciting.

My best guess is that making wholesale changes at this point is probably the worst thing we could do.

4 Comments

By jms1027 | DALLAS, TX August 26, 2008 05:26:55 pm:

Doug, we feel your pain and I would agree with your assessment that making wholesale changes is probably not the right move. However, one of the worst mistakes an agency of any size can make is to wait too long to make changes that are financially necessary. The numbers never lie. Don't bet on the come. Just as you understood what you were getting into when you hung out your shingle, so too should staff members recognize the often volatile nature of this business. Reducing staff is absolutely the worst part of running an agency. Many of us are in the business because we love helping people succeed. But nobody succeeds if the whole ship goes down. Navigate these rough seas carefully and good luck!

http://www.linkedin.com/pub/5/579/7AB

Permalink

By adagency7 | Longmont, CO August 27, 2008 11:33:02 am:

Doug,
I know the pain, our

Permalink

By bsilverstein | New York, NY August 28, 2008 04:59:41 pm:

Losing clients always hurts. It's nice to read an honest voice with the right perpective.
Hang in there and try to keep you staff focused and not fearful.

Permalink

By potratz | SCHENECTADY, NY September 9, 2008 01:17:30 pm:

I also know the feeling all too well since our firm specializes in automotive dealer marketing. In fact an automotive dealer committed suicide last week. I know that is an extreme case but we have been nervous since all of our eggs have been placed in one basket so to say but thank goodness our automotive clients have been more open to understanding and working with us on ways to find additional revenue by utilizing the internet not only for sales but service, parts and warranties. It also goes without saying we have been working hard and fast to find new ways to cut cost for our dealers.

Paul Potratz - Potratz Partners - Schenectady NY

Permalink